In 2016 Warehouse 13 Had Net Credit Sales of $850000

Multiple Choice

In 2016 Warehouse 13 had net credit sales of $850000. On January 1 2016 Allowance for Doubtful Accounts had a credit balance of $18000. During 2016 $27000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis) . If the accounts receivable balance at December 31 was $160000 what is the required adjustment to the Allowance for Doubtful Accounts at December 31 2016?

A) $160000
B) $27000
C) $25000
D) $16000